FX.co ★ UK Gilt Yields Fall as Oil Prices Retreat on US-Iran Talk Hopes

The yield on the UK’s 10-year gilt declined to 4.77% as oil prices fell on expectations of renewed US–Iran negotiations, easing inflation concerns. Both Brent and WTI crude slipped below $100 a barrel following reports that Washington and Tehran may resume talks before the current two-week ceasefire expires, despite President Donald Trump’s move to impose a US naval blockade in the Strait of Hormuz. The earlier surge in energy prices had led markets to price in nearly two Bank of England rate increases by late 2026. Separately, data showed UK like-for-like retail sales rose 3.1% in March, driven primarily by a 6.2% increase in food sales as consumers stocked up ahead of the Easter holiday.